Upscale Stamford apartment complex sells for $45 million

Published 8:55 pm, Thursday, September 12, 2013

As downtown Stamford gains momentum as a desirable location for people in their 20s and 30s, RMS Cos. has sold one of its recently built luxury apartment properties, Parallel 41.

The luxury apartment building, situated at 1340 Washington Blvd, sold to P41 Stamford LLC for $45 million. Parallel 41 contains 124 units, which range in rental rate from $2,100 for a one-bedroom to $4,000 for a loft or space with a private terrace. At the time of the sale, the building was fully leased.

RMS has been active in the downtown area, announcing the recent completion of The Moderne, another luxury housing complex on Franklin Street, where units have been snapped up since leasing began in August. With The Moderne 40 percent leased so far, RMS is beginning construction on another Summer Street apartment building, as of yet unnamed, and has at least two other apartment projects planned for the future.

"The Stamford-area rental market is so strong right now," Randy Salvatore, president and owner of RMS Cos., said. "This [sale] provided us with the opportunity to diversify one of the assets. It's really well located, and downtown Stamford has become such a diverse demographic."

The overall occupancy rate for apartments in downtown Stamford is about 96.4 percent, according to Nolletti, senior vice president of investments at Institutional Advisors. Stamford's growing nightlife, its collection of restaurants and entertainment venues make it particularly attractive to prospective tenants, particularly for exclusive properties with built-in amenities that aim to cater to the tenant. Renters in this market are beginning to expect such conveniences, Salvatore said.

Parallel 41, completed in the spring of 2012, boasts a movie theater in the building, an exercise room, a rooftop patio with ping pong tables, outdoor televisions and gas grills, and even vintage Pac-Man video game machines.

"Lifestyle is what drives people now," Salvatore said. "I think that today's tenants, they want almost like a hotel atmosphere in the apartments. We have hardwood floors, countertops imported from Spain and very modern features. But they also demand the same service levels. It's really a change in the mentality of the younger generation. And they have the resources to pay for them."

The young demographic is, unsurprisingly, the most rapidly growing in downtown, taking advantage of what the city has to offer. According to a study cited by the Downtown Special Services District, 60 percent of downtown residents are between 24 and 34, out of the 5,000 people living in the area. Another different but equally interested demographic is empty-nesters looking for a place closer to the action, said Sandy Goldstein, president of the DSSD.

"This is the hip place to live and that's why all these apartments are filling up," Goldstein said. "Young people like to live with young people. And empty-nesters want to be close to restaurants, theaters and movies. It's such a win-win down here."